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Spring 4-11-2018
Implementing Agile Methodology Techniques inAutomobile IndustryNikhil Kranthi DatrikaHarrisburg University of Science and Technology
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Running head: AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 1
Implementing Agile Methodology Techniques in Automobile
Industry
By
Nikhil Kranthi Datrika
183231
Harrisburg University
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 2
Contents
Chapter 1.0: Introduction ............................................................................................................................ 4
1.1 Problem Statement ............................................................................................................................. 5
1.2 Study Purpose ..................................................................................................................................... 8
1.3 Study Aim, Research Objectives, and Research Questions ................................................................. 9
1.3.1 Research Questions.................................................................................................................... 10
1.3.2 Research Objectives ................................................................................................................... 10
Literature Review ........................................................................................................................................ 11
2.0 Introduction ...................................................................................................................................... 11
2.1 Agile Manufacturing .......................................................................................................................... 11
2.2 Supply Chain Management ............................................................................................................... 12
2.3 Role of Quality Management in firm’s Continuous Improvement ................................................... 13
2.4 Customer Retention .......................................................................................................................... 14
2.5 Culture of automobile industry ......................................................................................................... 14
2.6 Auto Market ...................................................................................................................................... 15
2.7 Demands of Auto Industry ................................................................................................................ 16
2.8 Trends in automobiles ...................................................................................................................... 17
2.9 Innovation in auto industry ............................................................................................................... 18
Chapter Three ............................................................................................................................................. 19
Research Methodology ............................................................................................................................... 19
3.0 Introduction ...................................................................................................................................... 19
3.1 Planning the Review .......................................................................................................................... 20
3.2 Procedure used to Collect Literature ................................................................................................ 21
3.3 Literature Search Findings ................................................................................................................ 22
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 3
3.4 Search Term Definition ..................................................................................................................... 22
3.5 Broad Search Items ........................................................................................................................... 25
Quantitative Methodology (Questionnaire) ............................................................................................... 26
Chapter Four ............................................................................................................................................... 26
Results and Findings .................................................................................................................................... 26
Management Frameworks ................................................................... Error! Bookmark not defined.1
Chapter 5.0 Discussion .............................................................................................................................. 333
5.1 Auto Motive Industry Trends, Market and Innovation ................................................................... 355
5.2 Innovation ......................................................................................................................................... 37
5.3 Benefits of Agile innovation in automobile industry ........................................................................ 37
Conclusion ................................................................................................................................................. 40
Recommendations .................................................................................................................................... 411
References ................................................................................................................................................ 422
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 4
Chapter 1.0: Introduction
Automotive industries have continued to expand, as they cut on costs by regulating efficiency,
grow and make profits. The factors that have continued to change the industry include marketplace
growth, outsourcing for product development, customers demanding for improved reliability,
development of human-vehicle software and have continued to change the automotive industry.
As a result, companies have continued to face numerous challenges to manage the factors. The
challenges include managing volatility, experiencing massive uncertainty, as well as reduced
predictability of future businesses. Other challenges include handling a complex and
interconnected industry and the need to form joint ventures and maintain successful supplier
relationships.
The Automotive businesses must change their operating models to advance agility. An
example includes ensuring OEMs is flexible to operate across the value chain and provide value-
add, as well as personalized experiences. The Automotive companies must learn from Google and
Uber that have embraced digital activities to market new business models that can promote
innovation. The study conducted by Crute et al. (2013) showed that over 30% of automotive
businesses are willing to invest in advanced business models likely to drive value from new
capabilities. According to Elkins et al. (2014), having an advanced operating model permit digital
abilities that could reduce costs and support growth.
While rethinking of an operating model, the automotive companies must choose the ones that
are digital to help them improve efficiency as well as agility. According to Hallgren and Olhanger,
(2009), when companies operate on lean strategies, then they free up costs that could likely to be
reinvented to other significant fuel growth strategies and maintain a competitive advantage in the
industry. When companies invest in new business models and advanced digital abilities, then they
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 5
engage in aggressive growth. An example includes automotive firms moving beyond
manufacturing of vehicles to join the wider ecosystem that opens new business opportunities to
build new capabilities, collaborate with other partners to invest heavily in innovation (Poppendieck
& Cusumano, 2012).
The focus is on improving customer experiences through expansion strategies that include
joint ventures or acquisitions. It is impossible for companies to enhance efficiency and
performance without having a talented staff that is committed to the delivery of quality products
and services. Digital activities and innovation-driven automotive industry have increased stakes
for company processes across the value chain. Devadasan (2012), therefore believes dealerships,
OEMs, and manufacturers of vehicle parts require individuals that are digital savvy to initiate
transition to digital corporations (Tuck et al. 2006). The techno-savvy employees use digital
strategies to improve customer experience, leading to many companies to invest in human resource
practices such as training of employees.
1.1 Problem Statement
For the longest time, APM was restricted mainly in the software industry and few automotive
companies have adopted the same in auto industry. It is likely that APM in the manufacturing
industry and specifically Automotive creates major challenges; hence, the need to advance on the
topic of agility and realize ways automotive companies can take advantage of the concept to
enhance operations (Devadasan, 2012). The study is on US automotive industry because, for the
longest time, the corporations have been facing unprecedented competition as they invest their
capital heavily to compete with other global automakers. More so, Tuck et al. (2006) assert that
US automotive companies have to meet the excessive government regulations touching on
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 6
emissions control, as well as safety. The burdens have fallen on an industry that has to cope with
excessive losses caused by the recession and the fight for a market share (Silver et al. 2015).
Fuel consumption has not been major competitive factors in the market because the current
reduced global gasoline prices have led to consumers concentrate more on vehicle prices, enhanced
performance, comfort as well as style (Poppendieck & Cusumano, 2012). Nevertheless, firms with
the ability to offer the above features, as well as improved fuel economy, must have unique benefits
over those that lack the characteristics. According to Ward et al (2015), regardless of the future of
fuel economy standards, it is time for U.S automakers to invest in agility practices that can help
them compete globally. Banos et al. (2015) clarify that an effective fuel economy standard are not
the only competitive disadvantage U.S automotive firms would face currently.
Other factors include the fuel economy standards that remain costly in implementation that are
likely to distort a normal product cycle in the motor industry. The situation causes automotive
firms to experience increased financial burden on the local automotive firms. Therefore, the impact
on the automotive industry remains central to agility discussion that touches on enhanced
economic targets and techniques that can improve the manufacturing sector. Without agility
practices, it is likely that domestic manufactures in the US shall continue facing massive financial
constraints caused by poor practices, changes in the fuel economy laws. According to Huckvale et
al. (2016), US automotive industry is mature but cyclical, with the peaks and lows in vehicle
demand going contrary to the country’s economic situation. Today, Ford, General Motors, and
Chrysler have continued to diversify by manufacturing foreign vehicles, as well as sales. Other
strategies include nonautomotive diversification in financial services, vehicle production in
Northern America, vehicle rental firms, and defense electronics, activities that show the companies
have embraced agility.
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 7
The study is essential because most studies focusing on agility have only concentrated on
software companies and those in the service industries, mainly internet-based and financial
institutions ignoring the manufacturing industry because of its association with strategies that
enhance sales and marketing and nothing to do with agility (Ward et al. (2015; Huckvale et al.
2016; Silva et al. 2015). Companies must change their paradigm to improve performance changes.
It is time for automotive companies to align themselves with corporate beliefs that support quality,
product design and development, all aimed at meeting customer needs, as well as expectations.
Organizations could accrue improvement of “Key Performance Indicators” (KPIs) that include
productivity, quality perceptions, timeliness, product and service flexibility, as well as quality
perception (Poppendieck & Cusumano, 2012).
Agility practices encourage adoption of quality management paradigm a concept that has
attracted the attention of many. The paradigm operates well for firms that have scarce resources,
want market agility and desire to remain close to customers through improved services (Tuck et
al. 2006). According to Poppendieck and Cusumano (2012), the automotive industry in the US
experiences many challenges such as high training costs to develop talented staff and help them
acquire organizational skills. Other challenges include corporate culture barriers, poor
management styles, and emphasis on strategies that display how good the companies are, instead
of what clients require (Banos et al. 2015). More so, companies must contend with the stiff
competition in the global market, as well as strict government regulations.
Many researchersbelieve agility paradigms that concentrate on quality management could
improve the industry through the maximization of firm effectiveness and efficiency. The
improvements help firms to enhance competitive advantage and enhance market share (Jasti and
Kadali, 2015). Huckvale et al. (2016) observed that manufacturing companies in Germany attained
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 8
better product positioning by integrating quality management concepts essential in strategy
formulation. The companies successfully attained their KPI targets. Similarly, Ward et al. (2015),
explained that automobile firms in Sweden managed competitive pressure from manufacturing
companies overseas using new management technique in IT to enhance performance. Examples
of such companies include Scania and Volvo that adopted changes in their automotive designs, as
well as manufacturing processes that helped them manage costs and improve productivity.
However, the studies have failed to address the dynamics and factors that influence automotive
industry performance, in relation to manufacturing, as they concentrate more on after-sales offers.
To, therefore, bridge the gap, the study concentrated on providing agility practices in the
manufacturing process, managerial paradigm and employee performance and the effect it has on
company performance. It is essential to establish the relationship between the agility practices and
company’s organizational performance.
1.2 Study Purpose
The researcher was motivated to conduct the current research because there is evidence that
studies related to agile development and software advancement are limited (Corani & Pani, 2013).
It is therefore important to advance knowledge in the field, including adherence to the most
significant lean principles that regard continuous improvement (Poppendieck & Poppendieck,
2003). Wang et al. (2012) assert that limited knowledge on lean and agile application strategies in
response to software development include developers tailoring lean strategies to suit only specific
contexts. It was clear that there was no roadmap to apply the agile and lean strategies. As that
applied to all industries, automotive industries were worse, with many big companies in
automotive companies globally lacking a clear approach.
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 9
For instance, only Ahmad et al. (2013) conducted a systematic literature to disclose about
Kanban lean strategies focusing on interests, challenges, and practices. The findings helped to
clarify the benefits of kanban, challenges software developers face during application of agile
techniques. The challenges identified include lack of specialized skills, training and difficulties in
managing WIP, inability to select tasks based on priority and need for precise guidelines to
understand all processes. It is possible to mitigate challenges if there is a roadmap to implement
software development. Wang et al. (2012) emphasizes on the need to have detailed guidelines,
with Corona and Pani (2013) reviewing state-of-art lean adoption strategies.
It is also clear that most information on agile techniques has come from practitioners’ books,
as well as web sources, with research community depending mainly on practitioners’ books to
make decisions. Practitioners’ books remain subjective with an example of lean thinking being
related to continuous improvement as a major aspect to attain leanness. Continuous improvement
represents an example of a lean principle employed by Toyota production and has been emulated
by many (Womack et al. 2008. More so, Poppendieck and Poppendieck (2003) indicate that
continuous improvement played a significant role in lean software development.
It is essential to improve knowledge in software development, hence reacting to continuous
improvement principles. It is important to learn more about continuous improvement, with the
potential to engage in cross-disciplinary learning in manufacturing setting.
1.3 Study Aim, Research Objectives, and Research Questions
The researcher intended to respond adequately to study by Wang et al. (2012) and Ahmad et
al. (2013) that focuses on the need to acquire additional knowledge on software development to
ensure industrial engineering especially in auto mobile industry is a success. It is important to
analyse important engineering and agile techniques information to enhance software and agile
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 10
development. The rationale behind the study include the need to seek an understanding of agile
techniques in automobile industry as evident in various studies (Wang et al. 2012; Ikonen et al.
2011; Ahmad et al. 2013; Corona & Pani, 2013).
1.3.1 Research Questions
✓ What agile systems exist in the industry for automobile industries?
✓ What are the key performance indicators propagated by agile techniques?
✓ What are the current adoption stages, barriers, and limitations on implementation of
agile methods in software development in automobile industries?
1.3.2 Research Objectives
✓ To understand the existence of agile systems in the automobile industry
✓ To understand the key performance indicators propagated by agile techniques
✓ To understand the current adoption stages, barriers and implementation limitations of agile
methods in automotive industries
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 11
Literature Review
2.0 Introduction
The literature review shall define agility in automobile industries and expound on the
paradigms related to quality performance that improve dimensions of performance. The literature
shall also focus on quality management that can improve performance in the automotive industry.
Furthermore, it shall explore studies and findings of other researchers that carried similar research
in the field.
2.1 Agile Manufacturing
Agile manufacturing is a strategy that was introduced to solve business challenges and help
firms to improve production performance by using it as a competitive strategy. Many studies have
engaged in agile manufacturing and have managed to offer practical ways of implementing agility
manufacturing. A study by Kastoo et al. (2014) explains that the impact of agile production
abilities on production performance is more compared to the challenges. Another study focused
on the relationship between features of agility, prioritizing others more. This study, therefore,
intends to fill the gap in the field research using the casual modeling methodology and the impact
of agility abilities of organizational performance. The casual approach is essential in identifying
casual relationships between varied agility capabilities variables and production performance.
According to Jasti and Kodali (2015), productive performance involves product quality and
flexibility. Ward et al. (2015) define product quality as an adaptation of product that has the desired
features to clients reflecting in two production dynamics that meet customer needs by producing a
product that fulfills customer desires. Ward et al. (2015) explain that flexibility in production
volumes also plays a significant role to produce vehicles in accordance with customer demands.
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 12
Flexibility help reduce on cost and unnecessary time on producing vehicles not required in the
market, hence the need for companies to invest in big analytics strategies (Poppendieck &
Gusumano, 2012). Various researchers have focused on various agile strategies that include
constructs, agile employees, agile links, and agile processes.
As explained by Banos et al. (2015), the agile strategy involves processes to understand
the company and its position to conform to the accelerating market. The companies have to show
the commitment of senior staff to attain agility and utilize employees to improve performance.
Another element includes agility processes that involve the provision of manufacturing facilities
and procedures necessary in promoting agility function in the company. On the other hand, agile
links promote collaboration with clients, suppliers and other stakeholders to learn from the external
environment (Banos et al. 2015). According to Silva et al. (2015) also mention agile staff necessary
in improving quality, hence the need for firms to develop multi-skilled, flexible and expertise
employees, in addition to developing a culture that promotes initiatives, creativity and
organizational support (Ward et al. 2015).
2.2 Supply Chain Management
According to Huckvale et al. (2016), supply chain involves activities associated with the
flow, as well as the transfer of products from raw materials state until the time the product is
delivered to a consumer including information related to it. Supply chain management involves
the integration of activities to enhance relationships established in the chain to attain sustainable
competitive advantage (Huckvale et al. (2016). SCM objectives include satisfying customer
demands by delivering products with quality, at a reduced price and client’s desired time.
Optimization processes in a chain require coordination among members in a chain to improve
competitive advantage and enhanced relations (Banos et al, 2015). According to Banos et al
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 13
(2015), SCM enhances organizational performance through the establishment of strategic
partnerships with suppliers, meaningful relationship with clients, improved information sharing,
and quality of the information shared. Accordingly, Luthra et al. (2016), believe that agility
capabilities in the supply chain strive towards attaining consciousness, which is the ability to
identify changes, opportunities, threats and weaknesses. Bannos et al. (2015) assert that
consciousness is a fast movement that changes in speed and direction to respond to the entire body,
same to agility where players have to engage in required changes to improve performance.
2.3 Role of Quality Management in firm’s Continuous Improvement
According to Huckvale et al. (2016), the consequent focus of companies on continuous
improvement of processes and satisfaction of customer needs is a concept that distinguishes QM
from the conventional management. Quality management is an important business concept
automobile companies could use to bridge the gap between the traditional and human relation
theories through the introduction of customer variable processes (Mojica et al. (2014). Quality
management includes processes where companies introduce changes in its organizational systems,
which align social, as well as technical applications. The paradigm focuses more on customers by
fulfilling elements such as quality, product development and positioning, and product design.
Quality is a significant concept that adds value to company operations and specifically aims
at satisfying client needs. Quality encompasses the entire company because all functions enhance
product quality, hence affecting all departments of the organization. Silva et al. (2015) focused on
factors that drive competitive advantage in the manufacturing industry, with much emphasis on
quality, timely delivery, and responsiveness that impacts positively on company performance. In
return, the processes help companies to build their brand image and retain customers.
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 14
2.4 Customer Retention
According to Ward et al. (2015), quality management help reduces production costs in a
company, particularly through rework, warranty costs, field services and management of scrap.
Other benefits that accrue from the reduction of costs are transferred to the clients that purchase
goods and services at reduced costs leading to permanent loyalty. The quality process represents a
continuous process that starts with a client and ends with a client. More so concentration on quality
includes quality shifts that encourage process-driven discipline to a customer-oriented discipline.
2.5 Culture of automobile industry
The automobile industry is renowned for its success in the development, production, and
the marketing of motor products at the global level. This achievement can be attributed to the
proper coordination of international development, efficient products, and the effective marketing
activities (Bannos et al. (2015). This implies that the corporate culture of the internal networks of
the industry is playing a key role in striking a balance between globalization and localization. Due
to increased globalization, the various companies in the automobile sector have continuously
spread their competencies in terms of production, development, and the marketing processes
(Poppendieck & Cusumano, 2012). As such, comprehensive coordination and the international
value chains have always been very critical to the success of the industry. Additionally, the
competition in the automobile industry has ever gotten tougher every day. This has made the
companies operating under the industry to face major challenges in trying to optimize the global
value chains. Various studies have indicated that the challenges have always been solved by
applying some methods of coordinating internal activities. These include the
decentralization/centralization of the decision-making process, formal coordination, social
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 15
networks, direct personal control, output control, and the informal coordination (Jasti and Kadali,
2015). The consideration of all these alternatives has been key to the success of the companies.
Fostering of the corporate culture and networks of the companies is another factor that has
led to the international success. The most important part of nurturing the culture is to keep strong
internal company networks that enable the employees to freely share information and opinions.
This communication should be established outside the existing hierarchies and across all the
departments and functional teams. This has always been the norm in the automobile industry.
Employees across various departments do work together to accomplish various projects as they
find it convenient (Poppendieck & Cusumano, 2012). Managers are rotated through various
departments and locations, and this contributes to the efficient networking within the companies.
This has led to the growth of a corporate culture of the values, vision, and mission statements that
are shared by all the employees.
2.6 Auto Market
The automobile industry together with the banking industry has had some good times as
well as bad times in the market due to the fluctuating credit conditions (Jasti and Kadali, 2015).
However, the US auto market has capably managed the moving up and down of the of the market
dynamics. Since the development of the financial crisis in the US, the auto sales have been greatly
boosted over time (Bannos et al. (2015). The existence of the uptick in rates together with the
Federal Reserve Policy ifs feared to constrain the subprime loans. The lowering of loan volumes
will be a justification for the critics of the automobile industry to make arguments that the market
is tanking. However, the industry has always been able to handle this situation through the act of
pushing their transaction process up. Although they will sell few cars, they will have charge more
and end up selling them to the borrowers who are credit-worth.
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 16
Over the past years, the self-driving cars have received the biggest sales ever in the market.
The auto products such as Uber, Waymo, General Motors, Tesla, have made substantial progress
in the market pushing into the best-selling automobiles (Jasti and Kadali, 2015). This is
undoubtedly a great achievement. However, autonomy is not sustainable in the industry. The
existing technologies of the automakers and the tech companies will organize the next move and
overthrow any achievements made in the self-driving cars. This competition is healthy and is likely
to become more severe with time (Poppendieck & Cusumano, 2012). As such, agile remains to be
the only solution to the existing market dynamics.
2.7 Demands of Auto Industry
The demand in the automobile industry is determined by several factors which include the
price of the products. The demand for the products is greatly reduced when the prices are higher
than expected (Jasti and Kadali, 2015). This is also coupled with the second factor of the
availability of finance. If the customers have an option of getting funds from credit firms, they are
likely to have a higher demand for the products because they can access the funds and pay for the
products. Thirdly, the income of people plays a great role in determining the demand for the
products (Bannos et al. (2015). As the income increases, the demand also goes up because of the
availability of funds. Forth, the presence and quality of public transport will tend to lower the
demand for personal automobile products. The price of petrol also determines the demand for
automobiles. This is because the automobiles will always be operated by petrol. If the income of
a country is more distributed among the rich class, then the demand for the automobiles will be
higher. Lastly, the economic growth and development lead to the improved lifestyles that increase
the demand for automobiles.
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 17
For the supply of the automobiles, one of the determining factors is the price of the
automobiles. The higher the price of the automobiles will always lead to the higher rate of supply.
Secondly, the cost of the inputs such as labor, steel, machinery, and many others will directly lead
to a decline in automobile supply (Poppendieck & Cusumano, 2012). Thirdly, the technological
advancement is another factor that will make the production of the automobile products more
profitable (Jasti and Kadali, 2015). Therefore, more of the products will be produced increasing
the supply. Lastly, the change in government policies concerning the automobile industry does
affect the supply of the products. For instance, the reduction custom duty imposed on the purchase
of raw materials will automatically lead to the increased supply of the automobiles.
2.8 Trends in automobiles
Over the last few years, the automobile industry has been challenged more than what
people have always thought. At the look of the operations, the industry is seen to be operating
normally, and the performance is so strong. However, the industry is in serious trouble. First, the
total shareholder return (TSR) has drastically reduced (Bannos et al. (2015). This has painted the
industry as a less attractive investment compared to other industries. As such, there is a likelihood
that there will be few winners in the industry in the coming years. Most of the potential investors
are likely to flee the industry leading to limited capital resources for possible growth. Secondly,
the developments in the automobile have constantly made the products exceptionally expensive.
Many of the vehicles are made with new exciting features that require enhancing the expertise of
software engineers to assemble (Jasti and Kadali, 2015). This has always made and is likely to
make the products very expensive for the many people to afford. As a result, demand has reduced
with time leaving the industry in jeopardy. This calls for Agile Manufacturing to improve the
process of decision-making in the industry and maintain its competitiveness.
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 18
2.9 Innovation in auto industry
Now, the automobile industry is undergoing major innovations aimed at coping with the
advanced world technology. One of such innovations revolves around the production and delivery
of the products (Jasti and Kadali, 2015). Sometimes it becomes so difficult for the companies to
deliver the required products to the customers on time. This problem can be solved by predictive
analytics. It involves a scientific study of the customer requirements and deliver exactly what is
needed in the market. This is a driving force in the efficient production of a better managed supply
chain that will be translated into new desirable vehicle designs. Secondly, there are innovations
intended to keep the drivers safe with increased connectivity and automated driving. The
innovations in regard will be meant to protect the personal data of the driver and ensure that there
is no hacking of the infrastructure, the vehicle, and the routes are taken (Poppendieck & Cusumano,
2012). Thirdly, waiting for vehicle repair or refueling of the vehicles would not keep the driver
waiting for too long. It will be exceedingly easy to do so given that the innovations cater for that.
The fourth innovation involves the customers getting involved in the vehicle design
(Bannos et al. (2015). This will go beyond selecting the options in the catalog on the preferred
designs. The specific requirements of the customers will be captured for customized vehicles. This
will lead to more satisfied clients than ever before. With the increased internet connectivity,
technology will also render it extremely difficult for the vehicles to get lost. Tracking objects can
be designed and implemented to safeguard the products.
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 19
Chapter Three
Research Methodology
3.0 Introduction
In this chapter, the researcher established the epistemological and ontological views the
research established. The researcher employed action research, thereby discussing the history and
procedures of agile methodology techniques employed in auto mobile industry. The aim of the
research includes analyzing the research framework and the implementation process, laying
foundation for the data analysis chapter. The methodology adapted the researcher includes
systematic literature review. According to Fink (2005), systematic literature review represents a
research methodology used in identification, evaluation and analysis of existing literatures. In this
study the literature selected will be on agile methods employed in automobile industry.
The major key words used by the researcher include agile technology, auto mobile industry,
Agile methodologies, Automotive Research and Development, operationalization strategy,
efficiency, agile strategies, performance outcome, adaptive automotive development, drivers for
agile R&D approaches, and agile development theory. Others include quality design, product
design tools, lean design and agility in design. The search engines used for the research included
project management journal, “Manufacturing Engineering and Technology Group Center for
Automotive Research”, International Journal of Production Research, White Paper, Information
and Software Technology, and International Journal of Micro Air Vehicles.
The research range included studies from 2007 to 2017, hence the search strategy
implemented a strict criterion of papers produced in the above-mentioned journals and between
2007-2017, all of them being peer reviewed. More so, the papers should have included automobile
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 20
companies and employees of the same as main participants engaged in implementation of agile
methodology techniques. Another consideration includes studies happening in an automotive
setting, automotive mobile companies and agile technology centers. Moreover, studies published
before 27 and those in any other language apart from English were excluded from the research.
The study also considered additional inclusion including journals that have a precise methodology
and actual agile automobile projects done over the years.
3.1 Planning the Review
The planning phase is essential in comprehending the review objectives that supports the
review protocol. The review protocol was essential in defining the research questions and
implemented research strategy. The researcher conducted a brief review using industrial
engineering literature, which enhanced definition of keywords search such as constant work in
progress. The studies reviewed during the initial stages included Mukhopadhyay and Snahker
(2005), Anderson (2010) and Jones (2008) offering the researcher initial understanding of agile
techniques.
Table 1: Research Questions
RQ
RQ1 What agile systems exist in the industry for automobile industries?
RQ2 What are the key performance indicators propagated by agile techniques?
RQ3 What are the current adoption stages, barriers, and limitations on implementation of
agile methods in software development in automobile industries?
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 21
3.2 Procedure used to Collect Literature
The systematic review relied on advanced literature search on global books, journals,
reports, websites, project and newspaper articles. It was also important to review secondary
analysis of agile technology in automobile industries, as well as other industries to see the
comparisons. More so, the organizational structure of firms involved in the study was not standard,
leading to some challenges as well as customizations required as the study progressed. The
researcher utilized pseudonyms to ensure privacy of confidential information collected from
companies and employees involved in the previous studies. The corporate publications used were
unique for automotive companies and included tools like the marketing brochures, coffee-table
journals and books, yearbook detailing company efforts in agile production.
The researcher had the discretionary power on understanding how companies through
reviewed literatures achieved IT and agile objectives by analyzing projects implemented with
reduced lead time. With the research, the researcher managed to modify project management
procedures in some companies such as General Motors with ease because they provided
information easily. However, Ford company provided less information making it hard to
understand implementation of agile technology in the company with the limited information.
Despite the two companies being global brands, Ford was not ready to share a lot of information
about its projects therefore limiting flexibility.
It made General Motors flexible, allowing the researcher to systematically review its
projects, establishing functionality of the agile technologies within the constraints of the company.
Accordingly, the researcher did a mapping exercise on major automotive companies in the US,
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 22
with the exercise being hard because available data on overall and general agile projects in the US
was limited.
3.3 Literature Search Findings
Initially, the research produced 2450 papers, where 10 research papers were on agile
development in auto mobile industry (Khastoo, Dori & Raad, 2014; Kováč & Kováčová, 2016;
Silva et al. 2015). Other studies focused on lean production in automotive industry (Jasti & Kodali,
2015; Holweg, 2007; Nordin et al. 2010; Pettersen, 2009; Thun & Hoenig, 2011). Other studies
were on design implementation (Banos et al. 2015), mobile app implementation (Huckvale et al.
2016; Mujica et al. 2014). The researcher also reviewed reports by automobile companies and
industry globally, with major emphasis in USA, UK, Australia, China, South Korea and Japan,
because of their higher ranking in terms of automobile industry. The tickles were essential in
comprehending historical and current statistics of agile technology development in the US in
particular. The researcher also examined more secondary sources, documents and documentaries.
3.4 Search Term Definition
Depending on the research objectives and aim of the study, the researcher developed
various definition terms as shown in the table below: -
Search definition
Terms
Rationale
Product Design In this research, product design refers to the process of transforming
unique technical ideas that fit into the market requirements and
opportunities to advance new products in the market. On the other
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 23
hand, “product development and management Association (PDMA)
defined new product development as a general strategy procedure
organization employ, concept generations, product as well as
marketing plan development including the evaluation or
commercialization of the new products.
Deign Quality Banos et al. (2016) defines design quality as procedure of activities
done to allow manufacturers of product to meet client needs. It is
also the effectiveness level of design function used in establishing
product operational needs, as well as incorporation in design needs,
with ability to be converted into a final product (Jasti and Kodal,
2015). Product design quality procedure permits engineers to
identify plans and control factors that affect system robustness, as
well as reliability especially for upfront procedures in design
procedures. It involves measures that help in quantifying how best
design functions attain specific objectives. The objectives relate to
the product and organizational ones. Examples picked for the study
include Number of variations observed in similar product parts,
carryover product parts and their usage, change management, cost
avoidance, ability to save costs, viable technical changes.
Design Process
Efficiency
It involves design measures or metrics significant in the
quantification of efficiency to support cost effectiveness of design
procedures of all engineering designs. They are referred to us
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 24
efficiency measures with an example of Productivity= (Sales less
Materials of Engineering Labor.
Lean production
Design
Lean purpose includes eliminating wastes in all areas of production
and product development associated with procedures that start even
before the production. The term was developed from lean
manufacturing, which is a starting point of customer needs,
establishing value
added.
Any activity that does not add value to customer satisfaction, yet the
client pays for is reffered to as waste. The companies therefore has
to identify features of products with additional value, eliminate
activities without value and include clients in product development
stages.
Agile technology It represents a specific methodology employed in project
management and used in software development. It si important in
helping companies respond to unpredictability of developing the
software and always uses incremental, iterative work processes
refered to as sprints.
Table 1: Search Term Rationale
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 25
3.5 Broad Search Items
From the start, the researcher developed broader search strings utilizing Boolean
connectors that include (and, or and not). The three main terms include agile technology, lean
production, product development. With the study focusing on agile technology, the researcher
run the search strings in various database and obtained massive hits. The researcher picked on
databases with more hits to ensure they have maximum coverage. Utilizing the criterion, the
researcher picked on most common databases as shown in the table below: -
Agile Technology* AND Lean Production* OR Product Development in automotive
companies* NOT Massive Production.
Table 2: Search Strings alongside Boolean Connectors
Table 3: Summarizes of database records generated from the broad search strings.
Data
Base
Internatio
nal
Journal of
Productio
n
Research
Manufacturi
ng
Engineering
and
Technology
Group
Center for
Automotive
Research
Informati
on and
Software
Technolo
gy
Xplor
e
Internatio
nal
Journal of
Micro Air
Vehicles
Scop
us
and
ACM
IEE
E
project
manageme
nt journal
Web
of
Scien
ce
Hits
Reache
d
700 167 250 330 403 500 200 230 130
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 26
Quantitative Methodology (Questionnaire)
Apart from reviewing past literature the researcher also used online surveys to understand
if project managers in various companies had successfully implemented agile methodologies in
their operations.
Chapter Four
Results and Findings
Based on the online survey questions that were asked to 25 individuals who are working in the
automobile sector, the responses from individual’s shows how the organizations are adapting to
Agile Techniques over Traditional methodologies. Below is the list of 14 survey questions that
were sent to 25 individuals with 19 individuals responding.
1. Which project management methodology do Project Managers in your organization use? 2. If you used Agile, would you consider it to be successful? 3. What are the challenges faced in traditional methodologies? 4. Which Agile methods and practices do you use in your organization? 5. What is the scope of agile implementation in your organization? 6. Which roles are used in your agile project(s) and how much time is spent on those roles? 7. Were "organizational" or any other kind of changes necessary during the introduction of Agile? 8. Do you have a project manager that manages a team? 9. What are the organizational preconditions for successful agile transformation? 10. Which phase of the agile implementation is your organization currently in? 11. How do you rate your PMO’s ability to support and effect change in your organizations? 12. Is the delivery of projects within your organization co-ordinate by a Project Management Office (PMO) 13. Does your organization manage projects within a portfolio structure? 14. Agile in Automotive is defined as sum of agile practices.
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 27
When asked “Which project management methodology do Project Managers in your organization use”?, 15 individuals indicated that agile is being used and 4 indicated that they are still using traditional waterfall methodology. With 79% of the participants using agile methods, it was clear that agile methods had continued to gain popularity.
When asked “If you used Agile, Would you consider it to be successful”? , 84.2% responded agile to be successful as it is more flexible than traditional waterfall model. Agile model is widely becoming popular for minimizing the development time and producing a product within the scheduled time frame.
76%
24%
Survey Sample
Respondents No Response
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 28
When asked “What are the challenges faced in traditional methodologies”? , The results
showed that 47.4% indicated time gap between requirement elicitation and end product delivery,
36.8% indicated that the teams were not able to respond to the constantly changing environment,
10.5% indicated less user involvement in project process, while 5.3% indicated features that are
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 29
initially introduced may not be used by end customer.
When asked “Which Agile methods and practices do you use in your organization”? , Results
indicated that 72.2% responded scrum when compared to other practices. In scrum the projects
are split into multiple sprints where the entire team needs to collaborate and work collectively
to complete the scheduled tasks on time. Another advantage of choosing scrum is that the team
is accountable as all the members move quickly to be on the same page and this leads to
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 30
transparency of the project.
When asked “What is the scope of agile implementation in your organization”? , The results show
66.7% indicated that the agile was implemented at the project level.
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 31
When asked “Which roles are used in your agile project”? , The results show that 61.1% have
chosen scrum master as the role that is being used in the agile project. The scrum master is not
responsible for the project outcome when compared to project manager. The scrum team as a whole
is responsible for the project outcome. Scrum master is someone who makes sure the team is
focused on day to day activities such that the tasks are completed on time.
Agile Techniques in Auto Mobile Industry.xlsx
Management Frameworks
Feature Driven Development (FDD)
FDD represents a type of agile methodology developed between 1997 and 1999 by Jeff
Luca in Singapore (Ward et al. 2015). Asks are divided in small functionalities to pulverize work
under five basic principles. The principles include developing an overall model; building features
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 32
lists, planning by feature, designing by feature and building by feature. The main benefits of FDD
arise because every feature represents a minimum unit of the entire project. It is an indication that
each task, description, test, as well as changes remain minimal allowing the processes high agility
levels that cost less in terms of time and human input.
Extreme Programming
Also known as XP, this kind of agile management was developed in 1997 to concentrate
on engineering practices. It is therefore common that software development aims at optimizing
quality and responses to customer needs, as well as requests. The principles include simplicity that
helps in removing unnecessary functions. Another principal include feedback that entails frequent
contacts with clients, testing products and receiving significant suggestions. Another principle
involves changes that involve constant adaptations in the product up to the final stage. XP
methodologies represent an ideal situation where clients fail to understand what they want;
however constant support from experts supports agility to ensure product changes.
SCRUM
Jeff Sutherland developed scrum during the 1980s and it is interactive and incremental in
all the development procedures. It is the most popular method in agile methodology
implementation. It relies on breaking development in different parts completed through periodic
sprints. There are fixed stand-up meetings essential in tracking progress and report changes.
Sprints last for over four weeks and implementers hold meetings daily including the 15-minute
daily-scrums (Ward et al 2015; Silva et al. 2015; Luthra et al. 2016). The methodology has specific
features in human components involved in the development procedure. The benefits include
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 33
possibility to work with low-level client participations. More so, scrum helps to ensure teams
remain motivated and prioritize quality with short deadlines.
Stack Methodology
According to Khastoo et al. (2014), Franklin Valadares the founder of Run tried
implementing numerous agile methodologies by book during the management of teams for mobile
development. In the end, he established that most of the projects were rigid and complex, with
implementation suffering many setbacks, with many employees lacking enthusiasm for the same.
It was therefore necessary to implement stack methodology as an alternative that proved successful
in motivation of teams. The methodology fit diverse and varied activities and company projects
that teams engage in. More it supports continuous delivery, as well as the fundamental agile
principle. The team prioritizes tasks that have significant impacts and returns thereby optimizing
use of time.
Chapter 5.0 Discussion
During the analysis of the results, the studies show many similarities and differences as
well. The similarities were shown in difficulties engaged in adopting agile methods. Another
similarity aspect includes organizational culture in disagreeing with agile values and lacking
necessary skills and expertise with agility methods. The studies show that the main challenge
involved in full adoption of the agile methods includes employees lacking the required experience.
The possible causes include employees lacking necessary training in effective agile methods,
because of opinions expressed by individuals related to agile community in automobile companies.
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 34
In three areas, the results showed similarities to those achieved that include the size of the
technology team, time the company had been engaging in agile methods as well as most utilized
method (scrum). However, the major difference included percentages of projects carried out using
agile methodologies. In survey studies, most respondents included developers and they indicated
that their greatest concern include software quality at the time the new method was adopted (Ward
et al. 2015; Jasti & Kodali, 2015; Nordin et al. 2010). Other reasons provided by developer
respondents included inability to climb, with some resisting changes.
While considering software quality, it could be linked to lack of knowledge, no additional
training under the provided agile methods and techniques, because the nailed aspects require better
alignment with client to ensure effective delivery to a client. It is however significant to know that
it is hard to generalize the statistics as it corresponds to the preliminary study aimed at
complementing with huge data sets. It is significant in permitting concrete visualization of
mentioned scenario (Ward et al. 2013). The automobile industry is undergoing major innovations
aimed at coping with the advanced world technology. One of such innovations as shown in the
reviewed literature revolves around the production and delivery of the products (Jasti and Kadali,
2015). The studies indicated that sometimes it becomes difficult for the companies to deliver the
required products to the customers on time.
The solution includes predictive analytics that includes scientific studies of the customer
requirements and deliver exactly required in the market. Predictive analytics is a driving force in
the efficient production of a better-managed supply chain that will be translated into new desirable
vehicle designs. More so, there are innovations intended to keep the drivers safe with increased
connectivity and automated driving. The innovations in regard will be meant to protect the personal
data of the driver and ensure that there is no hacking of the infrastructure, the vehicle, and the
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 35
routes are taken (Poppendieck & Cusumano, 2012). Furthermore, waiting for vehicle repair or
refueling of the vehicles would not keep the driver waiting for too long. It will be exceedingly easy
to do so given that the innovations cater for that.
The fourth innovation involves the customers getting involved in the vehicle design
(Bannos et al. (2015). This will go beyond selecting the options in the catalog on the preferred
designs. The specific requirements of the customers will be captured for customized vehicles. This
will lead to more satisfied clients than ever before. With the increased internet connectivity,
technology will also render it extremely difficult for the vehicles to get lost. Tracking objects can
be designed and implemented to safeguard the products.
5.1 Auto Motive Industry Trends, Market and Innovation
The US auto market has capably managed the moving up and down of the of the market
dynamics. Since the development of the financial crisis in the US, the auto sales have been greatly
boosted over time (Bannos et al. (2015). The industry has always been able to handle this situation
through the act of pushing their transaction process up. Although they will sell few cars, they will
have charge more and end up selling them to the borrowers who are credit-worth.
Over the past years, the self-driving cars have received the biggest sales ever in the market.
The auto products such as Uber, Waymo, General Motors, Tesla, have made substantial progress
in the market pushing into the best-selling automobiles (Jasti and Kadali, 2015). It is a great
achievement (Poppendieck & Poppendieck, 2003). However, autonomy is not sustainable in the
industry, because existing technologies of the automakers and the tech companies will organize
the next move and overthrow any achievements made in the self-driving cars. The competition
remains healthy and is likely to become more severe with time (Poppendieck & Cusumano, 2012).
As such, agile remains to be the only solution to the existing market dynamics.
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 36
Accordingly, several factors, which include the price of the products, determine the
demand in the automobile industry. Product demand reduces when the prices are higher than
expected (Jasti and Kadali, 2015). The second factor includes finance availability, where
customers have an option of getting funds from credit firms, they are likely to have a higher
demand for the products because they are able to access the funds and pay for the products.
Furthermore, people’s income plays a great role in determining the demand for the products
(Bannos et al. 2015). Presence and quality of public transport will tend to lower the demand for
personal automobile products. The price of petrol also determines the demand for automobiles
because most automobiles operate using petrol. If the income of a country is distributed mainly
among the rich, then the demand for the automobiles will be higher. Lastly, the economic growth
and development lead to the improved lifestyles that increase the demand for automobiles.
Over the last few years, the automobile industry has been challenged more than what
people have always thought. At the look of the operations, the industry is seen to be operating
normally, and the performance is so strong. However, the industry is in serious trouble. First, the
total shareholder return (TSR) has drastically reduced (Bannos et al. (2015). This has painted the
industry as a less attractive investment compared to other industries. As such, there is likelihood
that there will be few winners in the industry in the coming years. Most of the potential investors
are likely to flee the industry leading to limited capital resources for possible growth. Secondly,
the developments in the automobile have constantly made the products exceptionally expensive.
Many of the vehicles are made with new exciting features that require enhancing the expertise of
software engineers to assemble (Jasti and Kadali, 2015).
For the supply of the automobiles, one of the determining factors is the price of the
automobiles. The higher the price of the automobiles will always lead to the higher rate of supply.
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 37
The cost of the inputs such as labor, steel, machinery and many others will directly lead to a decline
in automobile supply (Poppendieck & Cusumano, 2012). Moreover, the technological
advancement is another factor that will make the production of the automobile products more
profitable (Jasti and Kadali, 2015). Therefore, more of the products will be produced increasing
the supply. Lastly, the change in government policies concerning the automobile industry does
affect the supply of the products. For instance, the reduction custom duty imposed on the purchase
of raw materials will automatically lead to the increased supply of the automobiles.
5.2 Innovation
It is important to involve customers in the innovation process, specifically, the vehicle
design (Bannos et al. (2015). It involves selection of options provided in a catalog on the preferred
designs. The specific requirements of the customers will be captured for customized vehicles. It
leads to satisfied clients. With the increased internet connectivity, technology renders it extremely
difficult for the vehicles to get lost. Tracking objects can be designed and implemented to
safeguard the products.
5.3 Benefits of Agile innovation in automobile industry
The reviewed literature shows that automotive sector is important, with an expenditure of
over 66 billion pounds on a yearly basis on research and development only. More so, the motor
sector employees over 12 million workers in Europe alone (Silva et al. 2015). However, the sector
faces numerous challenges such as consumer behavior changing demand of the connected, smart,
and autonomous autos. According to Anderson (2010), modern car represents a high-tech machine,
and has led to many companies try to reinvent the driving experiences of clients. It means software
will continue advancing as the industry progresses to full autonomous vehicles. Car design,
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 38
therefore has become complex that before. Every company is in a tech arm race to manufacture
smart and autonomous vehicles.
Automotive companies must invent new methods of manufacturing, including simplifying
vehicle development procedures, reducing development cycles through prototyping and agile and
efficient ways. It is possible to achieve the agility through the creation of digital clones of new
models that allow development and testing to happen in a virtual world. The processes accelerate
design, tests and approve cycles (Petersen, 2009). The reviewed literature proposed automobile
companies following various steps. Among them, include creation of a digital twin car by creating
digital enterprise designs that foster innovation and attain quality product development (Kovac &
Kovacova, 2016; Jasti & Kodali, 2015).
The most repetitive procedure includes clean-sheet design, an approach used mainly in
aerospace. Aerospace companies host significant projects, teams, and even suppliers on a specific
modular supported by integrated tools essential in reinventing every element of a plane. The
companies use specific software applied in auto industry, an indication that the scope and ability
in the auto industry need to change to reflect what is happening in the aerospace. It is necessary to
co-ordinate change between varied functional sections to reduce on complexities. Tools should
make the processes of uniting development packages easier using one product design and a
simulation environment. Accordingly, one needs to develop and update technical documentation,
configure and manage material bills, as well as coordinate individuals and procedure towards
attainment of shared objectives (Huckvale et al. 2016; Ikonen et al. 2011).
According to Huckvale et al. (2016), the current era of of software is an indication that the
industry is progressing towards autonomous vehicles, hence the need to invent and explore
different software codes. Safety is an important attribute starting from the alert, then lane crossing
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 39
applications, as well as advancing driver observation systems. An example includes the wearable
technology that can link the car system to observe stress and some tiredness levels. The vehicles
take up additional tasks such as driving when the driver’s alert levels become compromised. More
so, during a crash, sensors could communicate the location, severity of injuries and occupants of
the vehicle.
It is a complex automation, writing, testing and amendments of software code even in most
time-intensive roles that should be simplified to ease change management and compress the
existing development cycles (Jasti & Kodali, 2015; Banos et al. 2015). “Integrate Computer Aided
Engineering and Computer Aided Design (CAD),” indicate that there has been an increased urge
to align designs as well as engineering analysis, alongside the integration of vehicle testing, as well
as simulation. Utilization of 1D and 3D digital models in vehicle prototyping time could reduce
significantly, because of the challenge of validating physical components, designs and various
parts in an iterative manner.
The integration of virtual and physical world help in understanding component
performance before signing-off on the fabrication to reduce product development costs as well as
timelines (Anderson, 2010). Modeling the software is important because of its role in automotive,
making it imperative to create, document, store and ensure the running of tests and available codes
(Nordin et al. 2010; Luthra et al. 2016).
When executing change, especially when handling many change requests happening in a
launch of a global program, it remains significant to link engineering and manufacturing
applications (Khastoo et al. 2014; Ahmad et al. 2013). According to Ahmad et al. (2013),
engineering and manufacturing sectors must work jointly to understand the type of tooling and
operational change required in handling varied vehicle configurations. According to Ahmad et al.
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 40
(2013), digital project management systems make it simple to combine product engineering,
manufacturing, as well as the shop floor execution in available integrated applications.
The visibility and available control unite capabilities in a single interface to reduce on
complexities to ensure the market is faster after the product launch, right procedures and process
controls. Complexities in the control system are obvious including the technologies, because of
complications in software interactions, which could also provide the required answer. Cohesive
tool suite across different designs, testing, simulation, production, and execution analytics indicate
it is easier to manage virtual teams, reduce costs, and automate development procedures.
Conclusion
Automotive industries have continued to expand, as they cut on costs by regulating efficiency,
grow, and make profits. The factors that have continued to change the industry include marketplace
growth, outsourcing for product development, customers demanding for improved reliability,
development of human-vehicle software and have continued to change the automotive industry.
As a result, companies have continued to face numerous challenges to manage the factors. The
challenges include managing volatility, experiencing massive uncertainty, as well as reduced
predictability of future businesses. Other challenges include handling a complex, interconnected
industry, and the need to form joint ventures and maintain successful supplier relationships.
The Automotive businesses must change their operating models to advance agility. An
example includes ensuring OEMs is flexible to operate across the value chain and provide value-
add, as well as personalized experiences. The Automotive companies must learn from Google and
Uber that have embraced digital activities to market new business models that can promote
innovation. The focus is on improving customer experiences through expansion strategies that
include joint ventures or acquisitions. It is impossible for companies to enhance efficiency and
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 41
performance without having a talented staff that is committed to the delivery of quality products
and services. Digital activities and innovation-driven automotive industry have increased stakes
for company processes across the value chain. Dealerships, OEMs, and manufacturers of vehicle
parts require individuals that are digital practical understanding to initiate transition to digital
corporations. The techno-savvy employees use digital strategies to improve customer experience,
leading to many companies to invest in human resource practices such as training of employees
Recommendations
The industry has entered a time of intense investment and competition; hence, the need for
smart innovation portfolio essential in helping automotive team designs. As seen from the research,
an integrated software setting makes it simple to develop and manage the embedded software
starting from the inception of projects to end of the same. The secret lies in making the processes
integral in general vehicle development plan. It allows the managing of large-scale software
deployments, while encouraging traceability and checking of errors. Its therefore recommended
that the automobile industries take advantage of the booming agile methodology, to monitor the
designs and come up with effective innovations. By so doing, they can make model designs and
hence gain a competitive advantage.
The main finding from the research is that in recent times, automobile industries are facing
the complexity of automotive software whereas they need to make the release cycles even smaller.
These, coupled with the pressure to cut the production costs, have led to many plan-driven
developments facing failures. It is therefore recommended that companies can adopt the latest agile
methodologies to cut the costs of production, ease task switching and cut the communication
chains as mentioned by the respondents. As such, processes will be faster and there will be high
productivity. Further research on the same topic is also recommended.
AGILE METHODOLOGY TECHNIQUES IN AUTO MOBILE INDUSTRY 42
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